Is Oliver Springs, Tennessee Good for Airbnb Investment?

To start an Airbnb in Oliver Springs, Tennessee, begin by researching local zoning laws and regulations through the Anderson County Planning Commission and Oliver Springs city offices, as short-term rentals may require special permits or have restrictions in certain residential zones. Contact the Tennessee Department of Revenue to obtain a business license and register for state sales tax collection, as Tennessee requires hosts to collect and remit occupancy taxes. Find a suitable property by searching local real estate listings or considering converting an existing residence, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Obtain necessary permits from Anderson County Building Department for any renovations, and consider getting a home inspection to identify potential issues. Furnish the property with quality, durable furniture focusing on essentials like comfortable beds, linens, kitchen appliances, WiFi, and local amenities information. Create your Airbnb listing with professional photos highlighting the property's proximity to Norris Dam State Park and Big South Fork National River, setting competitive pricing based on similar properties in the Knoxville metro area (typically $75-150 per night for the region). Install a keyless entry system for guest access, establish cleaning protocols between stays, and develop a system for managing bookings, guest communications, and maintenance issues, while maintaining compliance with Tennessee's short-term rental tax requirements and any local noise ordinances that may apply in this small East Tennessee community.

To identify profitable short-term rental properties in Oliver Springs, Tennessee, focus on properties within 10-15 minutes of Norris Dam State Park and Big South Fork National River, as outdoor recreation drives significant tourism demand in this area. Target 2-4 bedroom cabins or homes with outdoor amenities like hot tubs, fire pits, decks with mountain or water views, and proximity to hiking trails, fishing spots, or ATV access points. Analyze comparable STR properties using AirDNA and Mashvisor to identify average daily rates of $80-150 and occupancy rates of 60-75% typical for the region, while researching competition through Airbnb and VRBO searches within 20-mile radius including nearby Wartburg and Harriman markets. Purchase properties under $200,000 that can generate $2,000-4,000 monthly revenue after accounting for 25-30% expenses, and utilize tools like BiggerPockets calculators, local MLS data from Coldwell Banker or RE/MAX agents familiar with Anderson County, and Tennessee vacation rental regulations. Consider properties near Cove Lake State Park, Frozen Head State Park access points, or along the Clinch River corridor, ensuring reliable internet for remote workers and adequate parking for boats or recreational vehicles that attract the primary visitor demographic of outdoor enthusiasts and families seeking nature-based getaways.

To obtain an Airbnb/STR permit in Oliver Springs, Tennessee, you must first contact the Oliver Springs City Hall at 7746 Oliver Springs Highway to inquire about short-term rental regulations, as the city may require a business license and zoning compliance verification. Submit an application including property deed or lease agreement, proof of insurance with minimum $1 million liability coverage, floor plan showing maximum occupancy, contact information for a local property manager if you're non-resident, and Tennessee state tax registration. Required documents typically include a completed business license application, zoning compliance certificate from the planning department, fire safety inspection certificate, and proof of parking availability for guests. Application fees generally range from $50-150 for the business license plus $25-75 for inspections, with annual renewal fees of $25-100. The approval timeline is typically 2-4 weeks after submitting complete documentation, though initial inspections may add 1-2 weeks. Oliver Springs specific requirements likely include maintaining quiet hours from 10 PM to 7 AM, providing adequate parking spaces, ensuring proper waste management, displaying the permit number in rental listings, and maintaining a guest registry. You must also register with the Tennessee Department of Revenue for sales tax collection and remittance, and comply with any homeowners association restrictions if applicable.

Short-term rentals (STRs) are generally legal in Oliver Springs, Tennessee, as the city has not enacted specific prohibitions against vacation rentals, though they must comply with basic zoning and safety requirements. The city follows Tennessee state law which allows STRs unless specifically restricted by local ordinance, and Oliver Springs has not implemented comprehensive STR regulations as of recent years. Property owners typically need to ensure compliance with residential zoning requirements and may need basic business licenses, though enforcement has been relatively minimal given the city's small size and limited tourism infrastructure compared to larger Tennessee destinations. There are no specifically prohibited areas within Oliver Springs city limits for STRs, though properties must meet standard housing codes and safety requirements. Recent legal changes have been minimal at the local level, with most regulatory activity occurring at the state level where Tennessee has generally maintained a pro-STR stance while allowing municipalities to implement reasonable regulations, and Oliver Springs has largely maintained its permissive approach without significant new restrictions or licensing requirements as of 2023-2024.

The best areas for Airbnb investment in Oliver Springs, Tennessee include the historic downtown district near Main Street, which attracts visitors interested in the town's coal mining heritage and proximity to the Museum of Appalachia, and neighborhoods close to Cove Lake State Park (approximately 15 minutes away), which draw outdoor enthusiasts for fishing, hiking, and camping activities. Properties near the Norris Dam State Park area are particularly attractive due to water recreation opportunities and scenic lake views that appeal to weekend getaways and family vacations. The residential areas along Highway 61 and near the Oliver Springs Elementary School offer good investment potential due to their accessibility and proximity to both Knoxville (30 minutes) and Oak Ridge (20 minutes), making them suitable for business travelers working at Oak Ridge National Laboratory or Y-12 National Security Complex. Additionally, properties near the Big South Fork National River and Recreation Area access points benefit from the growing outdoor tourism market, particularly during spring and fall seasons when visitors come for whitewater rafting, rock climbing, and scenic drives through the Cumberland Mountains.

Airbnb properties in Oliver Springs, Tennessee are subject to Tennessee state sales tax of 7% and local sales tax which varies by county but typically ranges from 2.25% to 2.75% in Anderson County where Oliver Springs is located, bringing the total sales tax to approximately 9.25-9.75% on short-term rental stays. Additionally, Tennessee imposes a state occupancy tax of 3% on lodging accommodations under 30 days. Anderson County may impose an additional local occupancy tax of 1-3%, making the total occupancy tax burden around 4-6%. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system implemented around 2017-2018, and Airbnb remits these taxes monthly to the Tennessee Department of Revenue and applicable local tax authorities. Property owners must register with the Tennessee Department of Revenue for a sales tax permit and may need to file returns even when Airbnb collects taxes, depending on local requirements. Stays of 30 days or longer are generally exempt from occupancy taxes but may still be subject to sales tax, and certain exemptions may apply for government employees or other qualifying guests as defined by Tennessee tax code.

To start an Airbnb in Oliver Springs, Tennessee, expect total costs around $180,000-$220,000. Property purchase will be the largest expense at approximately $150,000-$180,000 based on median home prices in rural Tennessee markets. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary by county but expect $500-$1,500 for business licenses, short-term rental permits, and inspections. Insurance premiums for short-term rental coverage run $2,000-$3,500 annually, with the first year paid upfront. Utility deposits and connections cost approximately $500-$800 for electricity, water, gas, internet, and cable services. First six months operating costs including utilities ($150-$200 monthly), cleaning supplies, maintenance reserves, platform fees to Airbnb and VRBO, marketing, and property management tools total roughly $4,000-$6,000, assuming moderate occupancy rates during the initial launch period.

Airbnb properties in Oliver Springs, Tennessee typically generate annual revenues between $15,000-$35,000 for whole-home listings, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts in the area reporting annual profits of $8,000-$18,000 on properties valued between $150,000-$250,000. Success factors include proximity to Norris Dam State Park and Big South Fork recreational areas, competitive pricing during peak summer and fall seasons, professional photography, responsive guest communication, and maintaining consistent 4.5+ star ratings. Properties with hot tubs, fire pits, or lake access command premium rates and achieve 65-75% occupancy rates compared to 45-55% for basic accommodations, with hosts like those operating cabins near Norris Lake reporting ROI of 12-18% annually when factoring in property appreciation and tax benefits.

Based on Oliver Springs, Tennessee market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%. Properties in this rural Tennessee market, located near Norris Dam State Park and Big South Fork, benefit from outdoor recreation tourism with average daily rates of $85-120 and occupancy rates of 45-65% annually. Initial investment recovery and profitability generally occurs within 18-24 months, with stronger performance during peak seasons (April-October) when lake and hiking activities drive demand. The lower property acquisition costs compared to major Tennessee markets like Nashville or Gatlinburg, combined with growing interest in rural vacation rentals, support these return projections, though success depends heavily on property condition, amenities, and proximity to recreational attractions.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Oliver Springs, Tennessee. Local real estate agents serving the area include Realty Executives Associates and Century 21 Legacy, both with experience in investment properties around the Oak Ridge and Knoxville markets that extend to Oliver Springs. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for the East Tennessee region. Awning and RedAwning offer full-service Airbnb property management and acquisition assistance in Tennessee markets. Local property management companies such as Tennessee Mountain Rentals and Smoky Mountain Property Management have expanded services to include investment property sourcing in smaller Tennessee towns like Oliver Springs. Real estate investment firms like HomeVestors and We Buy Ugly Houses operate in Tennessee and can help identify distressed properties suitable for Airbnb conversion, while platforms like Roofstock and Arrived Homes occasionally feature Tennessee mountain properties that could work for short-term rentals in the Oliver Springs area.